Traders are fully pricing in two quarter-point rate cuts from the Federal Reserve this year, fueled by promising economic indicators. Recent data, including the US producer prices, reflects a potential easing of inflation that could influence policy.
The 30-year Treasury yield fell to 4.84%, marking a significant decline as traders adjust expectations. Following the release of positive inflation data, this move indicates a shift in market sentiment regarding Fed policy.
European bond markets, especially UK bonds, have gained ground in response to the changing economic landscape. Meanwhile, oil prices have retreated, reflecting trader confidence in anticipated Fed actions and their effects on global markets.
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